Abstract
Internationalisation is seen as an important issue for the globalised economy. Therefore, it has been widely investigated among multinational enterprises and small- and medium-sized enterprises (SMEs). Even though earlier work acknowledges that internationalisation consists of entrepreneurial actions (e.g. discovery and exploitation of an international business opportunity) and learning from the market, detailed understanding of the process of social learning in internationalisation is still lacking. In this study, we use the cycle of expansive learning as a conceptual framework. It shows that entrepreneurial actions between SMEs construct international business opportunities. More specifically, entrepreneurial actions are about learning that constructs and co-creates knowledge. The cycle of expansive learning assumes that such knowledge is social in nature making the very nature of knowledge the basis of claims to explicate what the process of social learning entails. In the context of international entrepreneurship, there is also a by-product of that type of co-created and object-oriented action: the internationalisation of SMEs. The purpose of this study is to explore the internationalisation of SMEs through the cycle of expansive learning to better understand how such a by-product can be created. In examining a story of collaboration between two entrepreneurs, we found the start of the cycle to be more significant than the later stages. From the perspective of social learning, this suggests that entrepreneurs create meanings rather than exploit international opportunities in the business-sense alone. That said, internationalisation happens as a by-product of social acting.
Similar content being viewed by others
References
Acs Z, Dana L-P, Jones MV (2003) Introduction. Toward new horizons: the internationalisation of entrepreneurship. J Int Ent 1(1):5–12
Alvarez SA, Barney JB (2007) Discovery and creation: alternative theories of entrepreneurial action. Strat Ent J 1:11–26
Alvarez SA, Barney JB (2010) Entrepreneurship and epistemology: the philosophical underpinnings of the study of entrepreneurial opportunities. Acad Manag Ann 4:557–583
Andersson S (2000) The internationalization of the firm from an entrepreneurial perspective. Int Stud Manag Organ 30(1):63–92
Andersson S, Wictor I (2003) Innovative internationalisation in new firms: born globals—the Swedish case. J Int Ent 1:249–276
Ardichvili A, Cardozo R, Ray S (2003) A theory of entrepreneurial opportunity identification and development. J Bus Ventur 18:105–123
Baker T, Nelson R (2005) Creating something from nothing: resource construction through entrepreneurial bricolage. Adm Sci Q 50:329–366
Baron RA (2006) Opportunity recognition as pattern recognition: how entrepreneurs “connect the dots” to identify new business opportunities. Acad Manag Perspect 20:104–120
Becker-Ritterspach F, Saka-Helmout A, Hotho JJ (2010) Learning in multinational enterprises as the socially embedded translation of practices. Crit Perspect Int Bus 6:8–37
Bell J, McNaughton R, Young S, Crick D (2003) Towards an integrative model of small firm internationalization. J Int Ent 1:339–362
Berger PL, Luckmann T (1966) The social construction of reality: a treatise of sociology of knowledge, 1st edn. Anchor Books, New York
Björkman I, Forsgren M (2000) Nordic international business research. A review of its development. Int Stud Manag Organ 30:6–25
Busenitz LW, Barney J (1997) Differences between entrepreneurs and managers in large organization: biases and heuristics in strategic decision-making. J Bus Ventur 12(1):9–30
Corbett AC (2005) Experiential learning within the process of opportunity identification and exploitation. Ent Theory Pr 29(4):473–491
Corbett AC (2007) Learning asymmetries and the discovery of entrepreneurial opportunities. J Bus Ventur 22:97–118
Coviello N, Munro H (1995) Growing the entrepreneurial firm. Networking for international market development. Eur J Mark 29(7):49–61
Crick D, Spence M (2005) The internationalisation of ‘high performing’ UK high-tech SMEs: a study of planned and unplanned strategies. Int Bus Rev 14:167–185
Cyert RM, March JG (1963) A behavioral theory of the firm. Prentice Hall, New York
Czarniawska B (1997) A four times told tale: combining narrative and scientific knowledge in organization studies. Organ 4:7–30
Dawson A, Hjorth D (2012). Advancing family business research through narrative analysis. Fam Bus Rev (in press).
Dees JG (1998) The meaning of “social entrepreneurship”. Kauffman Center for Entrepreneurial Leadership, Stanford, CA, pp. 1–6.
Delmar F (2006) The psychology of the entrepreneur. In: Carter S, Jones-Evans S (eds) Enterprise and small business. Principles, practice and policy. Pearson Education Limited, Essex, pp 152–175
Dew N (2009) Serendipity in entrepreneurship. Organ Stud 30:735–753
Ellis PD (2000) Social ties and foreign market entry. J Int Bus Stud 31(3):443–469
Ellis PD (2011) Social ties and international entrepreneurship: opportunities and constraints affecting firm internationalization. J Int Bus Stud 42:99–127
Engeström Y (1987) Learning by expanding. An activity-theoretical approach to developmental research, 1st edn. Orienta-Konsultit, Helsinki
Engeström Y (2000a) Activity theory and the social construction of knowledge: a story of four umpires. Organ 7(2):301–310
Engeström Y (2000b) Activity theory as a framework for analyzing and reframing work. Ergon 43(7):960–974
Engeström Y (2001) Expansive learning at work: toward an activity theoretical reconceptualization. J Educ Work 14:133–156
Engeström Y, Blackler F (2005) On the life of the object. Organ 12:307–330
Fletcher D (2004) International entrepreneurship and the small business. Entr Reg Dev 16:289–305
Forsgren M (2002) The concept of learning in the Uppsala internationalization process model: a critical review. Int Bus Rev 11:257–277
Fowler A (2000) NGDOs as a moment in history: beyond aid to social entrepreneurship or civic innovation? Third World Q 21:637–654
Gartner WB (1989) Who is an entrepreneur? Is the wrong question. Entr Theory Pr 13:47–68
Gartner WB (2010) A new path to the waterfall: a narrative on a use of entrepreneurial narrative. Int Small Bus J 28:6–19
Gartner WB, Bird BJ, Starr J (1992) Acting as if: differentiating entrepreneurial from organizational behaviour. Ent Theor Pract 16:13–32
Gergen KJ (2001) Social construction in context. Sage Publications, London
Görling S, Rehn A (2008) Accidental ventures—a materialist reading of opportunity and entrepreneurial potential. Scand J Manag 24:94–102
Harris S, Wheeler C (2005) Entrepreneurs’ relationships for internationalisation: functions, origins, strategies. Int Bus Rev 14:187–207
Hjorth D (2007) Lessons from Iago: narrating the event of entrepreneurship. J Busin Ventur 22:712–732
Hjorth D, Johannisson B, Steyaert C (2003) Entrepreneurship as discourse and life style. In: Czarniawska B, Sevón G (eds) The Northern Lights—organization theory in Scandinavia. Trelleborg, Berlings Skogs
Hjorth D, Jones C, Gartner WB (2008) Introduction for ‘recreating/recontextualizing entrepreneurship’. Scand J Manag 24(2):81–84
Hohenthal J, Johanson J, Johanson M (2003) Market discovery and international expansion of the firm. Int Bus Rev 12:659–672
Holt R (2008) Using activity theory to understand entrepreneurial opportunity. Mind Cult Act 15:52–70
Huber GP (1991) Organizational learning: the contributing processes and the liberatures. Organ Sci 2:88–115
Johanson J, Vahlne J-E (1977) The internationalization process of the firm: a model of knowledge development and increasing foreign commitments. J Int Bus Stud 8:23–32
Johanson J, Vahlne J-E (2003) Business relationship commitment and learning in the internationalization process. J Int Ent 1:83–101
Johanson J, Vahlne J-E (2009) The Uppsala internationalization model revisited—from liability of foreignness to liability of outsidership. I Int Bus Stud 40(9):1411–1431
Juho A (2011) Accelerated internationalization as a network-based international opportunity development process. Dissertation, University of Oulu, Acta Universitatis Ouluensis G51
Kauppinen A (2012) The event of organisational entrepreneurship. Disrupting the reigning order and creating new spaces for play and innovation. Doctoral Dissertation. Tampere: Acta Universitatis Ouluensis, G Oeconomica 56.
Kauppinen A, Puhakka V (2010) Creating entrepreneurial opportunities—an organizational and social constructive phenomenon in the creation of new businesses. Int J Ent Ventur 1:432–448
Keupp MM, Gassmann O (2009) The past and the future of international entrepreneurship: a review and suggestions for developing the field. J Manag 35(3):600–633
Kirzner I (1997) Entrepreneurial discovery and the competitive market process: an Austrian approach. J Econ Lit 35:60–85
Kiss AN, Danis VM (2008) Country institutional context, social networks, and new venture internationalization speed. Eur Manag J 26:388–399
Knight GA, Cavusgil ST (1996) The born global firm: a challenge to traditional internationalization theory. In: Cavusgil ST, Madsen T (eds) Advances in international marketing 8. JAI Press, Greenwich, pp 11–26
Kontinen T, Ojala A (2011) Social capital in relation to the foreign market entry and post-entry operation of family SMEs. J Int Enterpren 9:133–151
Lumpkin GT, Lichtenstein BB (2005) The role of organizational learning in the opportunity recognition process. Enterpren Theor Pract 29:451–472
Madsen TK, Servais P (1997) The internationalisation of born globals: an evolutionary process? Int Bus Rev 6:561–583
March JG (1991) Exploration and exploitation in organizational learning. Organ Sci 2:71–87
McAuley A (1999) Entrepreneurial instant exporters in the Scottish arts and crafts sector. J Int Mark 7(4):67–82
McDougall PP, Oviatt BM (2000) International entrepreneurship: the intersection of two research paths. Acad Manag J 43:902–906
Meyer K, Skak A (2002) Networks, serendipity and SME entry into Eastern Europe. Eur Manag J 20:179–188
Oviatt BM, McDougall PP (1994) Toward a theory of international new ventures. J Int Bus Stud 25:45–64
Oviatt BM, McDougall PP (2005) Defining international entrepreneurship and modeling the speed of internationalization. Enterpren Theor Pract 29:537–553
Park JS (2005) Opportunity recognition and product innovation in entrepreneurial hi-tech start-ups: a new perspective and supporting case study. Technovation 25:739–752
Penrose ET (1959) The theory of the growth of the firm. John Wiley, New York
Pentland BT (1999) Building process theory with narrative: from description to explanation. Acad Manag Rev 24:711–724
Rae D, Carswell M (2001) Towards a conceptual understanding of entrepreneurial learning. J Small Bus Enterprise Dev 8(2):150–158
Reid SD (1981) The decision-maker and export entry and expansion. J Int Bus Stud 12:101–112
Rialp A, Rialp J, Knight GA (2005) The phenomenon of early internationalizing firms: what do we know after a decade (1993–2003) of scientific inquiry? Int Bus Rev 14:147–166
Ruzzier M, Hisrich RD, Antoncic B (2006) SME internationalization research: past, present, and future. J Small Bus Enterprise Dev 13:476–497
Saarenketo S, Puumalainen K, Kuivalainen O, Kyläheiko K (2004) Dynamic knowledge-related learning processes in internationalizing high-tech SMEs. Int J Prod Econ 89:363–378
Sagawa S, Segal E (2000) Common interest, common good: creating value through business and social sector partnership. Calif Manag Rev 42:105–122
Sarasvathy SD, Dew N, Velamuri SR, Venkataraman S (2003) Three views of entrepreneurial opportunity. A testable typology of entrepreneurial opportunity. In: Acs ZJ, Audretsch DB (eds) Handbook of entrepreneurship research. An interdisciplinary survey and introduction. Kluwer, Dordrecht, pp 141–160
Schumpeter J (1934) The theory of economic development. Harvard University Press, Cambridge
Schweizer R, Vahlne J-E, Johanson J (2010) Internationalization as an entrepreneurial process. J Int Enterpren 8(4):343–370
Selnes F, Sallis S (2003) Promoting relationship learning. J Mark 67(3):80–89
Shane S (2000) Prior knowledge and the discovery of entrepreneurial opportunities. Organ Sci 11(4):448–470
Shane S (2003) A general theory of entrepreneurship: the individual-opportunity nexus. Edward Elgar, Northampton
Søderberg A-M (2006) Narrative interviewing and narrative analysis in a study of a cross-border merger. Manag Int Rev 46(4):397–416
Solberg CA, Askeland V (2006) The relevance of internationalization theories: a contingency framework. In: Fai FM, Morgan EJ (eds) Managerial issues in international business. Palgrave Macmillan, Basingstoke, pp 9–32
Steyaert C, Hjorth D (2006) Entrepreneurship as social change: a third movements in entrepreneruship book. Edward Elgar, Cheltenham
Steyaert C, Katz J (2004) Reclaiming the space of entrepreneurship in society: geographical, discursive and social dimensions. Ent Reg Dev 16:179–196
Teece DJ (1977) Technology transfer and by multinational firms: the resource cost of transferring technological know-how. Econ J 87:242–261
Tsoukas H, Chia R (2002) On organizational becoming: rethinking organizational change. Organ Sci 13:567–599
Weerawardena J, Mort GS, Liesch PW, Knight G (2007) Conceptualizing accelerated internationalization in the born global firm: a dynamic capabilities perspective. J World Bus 42:294–306
Zahra SA, George G (2002) International entrepreneurship: the current status of the field and future research agenda. In: Hitt MA, Ireland RD, Camp SM, Sexton DL (eds) Strategic entrepreneurship: creating a new mindset. Blackwell, Oxford, pp 255–288
Zahra SA, Korri JS, Yu JF (2005) Cognition and international entrepreneurship: implications for research on international opportunity recognition and exploitation. Int Bus Rev 14:129–146
Acknowledgements
We appreciate the insightful comments of Professor Vesa Puhakka, Professor Daniel Hjorth, Professor Robin Holt and Professor Tuija Mainela on earlier versions of this paper. We want to thank Professor Hamid Etemad, the editor of the Journal of International Entrepreneurship, for the feedback and collaboration on this paper and two anonymous reviewers for the constructive comments on earlier versions of this manuscript. Additionally, we want to express our warm thanks to Thomas Basbøll for assistance with writing the article and the Finnish Foundation for Economic Education for funding this research.
Ethical standards
The experiments carried out in this study comply with the current laws of Finland and Denmark.
Conflict of interest
The authors declare that they have no conflict of interest.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Kauppinen, A., Juho, A. Internationalisation of SMEs from the perspective of social learning theory. J Int Entrep 10, 200–231 (2012). https://doi.org/10.1007/s10843-012-0093-6
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10843-012-0093-6